The Tasmanian Government is building a better Tasmania: now, and for the future.

As part of the 2025-26 Budget, Treasurer, Guy Barnett, provided an update on the Government’s comprehensive reform agenda to strengthen the governance, accountability, and long-term performance of Government Business Enterprises (GBEs) and State-owned Companies (SOCs).

“The Budget – which is driven by our 2030 Strong Plan for Tasmania’s Future - ensures we have a strong economy by backing business and economic growth,” the Treasurer said.

“It charts a sensible pathway to surplus and delivers for Team Tasmania.

“As taken to the 2024 election, Government Businesses are required to deliver outcomes consistent with the Government’s policy objectives, delivering services to Tasmanians at the lowest sustainable cost, and growing our economy and engaging with business and community in a constructive manner.

“We will always act in the best interests of all Tasmanians.

“This is why we announced both the feasibility assessment of a potential merger of TasRail, TasPorts and TT-Line and the review of Government businesses to see which, if any, would provide Tasmanians with better value if they were divested.

“This is a critical piece of work that has been labelled by the Tasmanian Chamber of Commerce and Industry as the most ambitious reform agenda in 20 years.”

The Tasmanian Government has received advice from Mr Saul Eslake, outlining initial observations, including detailed analysis on both the Labor and Liberal Governments’ divestment histories across the country.

As part of Stage 1, Mr Eslake has recommended, and the Tasmanian Government has accepted, ruling out the following Government businesses from divestment as a whole entity:

• Port Arthur Historic Site Management Authority;

• Tasmanian Public Finance Corporation;

• Tasracing Pty Ltd;

• Tasmanian Railway Pty Ltd (TasRail);

• Public Trustee; and
• Entura.

Mr Eslake made it clear that he is not recommending those remaining government businesses for divestment at this stage.

Treasurer Barnett thanked Mr Eslake for his work and reinforced that Hydro will always remain in the hands of the Tasmanian Government.

Further, following the receipt of an independent analysis, the Government has determined not to pursue a merger of TasRail, TT-Line and Tasports.

The analysis undertaken has proven critical in informing the Government’s broader government business governance reforms.

In light of that decision and observations contained in the independent assessment, the Government has also ruled out divestment of TT-Line.

As a result of the analysis, the Government will consider various alternative options to improve outcomes and reduce operational and capital risk across the three businesses.

“We now have a pathway forward and will move to Stage 2, which will further consider other government businesses,” Treasurer Barnett said.

“We are taking a considered and methodical approach to reform to ensure it delivers the best outcomes for Team Tasmania.”